Manitex International, provider of cranes and specialized material and container handling equipment has sold its Load King subsidiary to Utility One Source, a privately held single source supplier of specialty equipment and services for the utility and heavy equipment industries.
The transaction, which closed Dec. 28, 2015, was for $6.525 million in cash with net proceeds of about $6.2 million to Manitex, which the company will use to repay bank debt.
Trailing 12-months revenue for Load King was about $18.5 million, with EBITDA of $800,000.
“The divestiture of Load King is one of several actions we are taking to reduce the company’s indebtedness and focus on our higher margin core lifting business, which remain our top corporate priorities heading into 2016,” said David Langevin, chairman and CEO of Manitex International. “Load King is a solid strategic fit with Utility One Source and this transaction should be of substantial benefit to both parties.”
Utility One Source was founded earlier in 2015 by private equity funds managed by Blackstone. Utility One Source focuses on sales, rental, parts and installation, equipment customization, remanufacturing, and aftermarket services.
“Load King will be a great asset for our team, further enhancing the already compelling commitment to becoming the leading provider of solutions and selection to the heavy equipment and utility industries,” said Utility One Source chairman Chris Ragot.
The addition of Load King is the sixth acquisition under the Utility One Source brand since its formation in February 2015. Previous acquisitions include Custom Truck & Equipment, Utility Fleet Sales, Forestry Equipment of Virginia, UCO Equipment and TNT Equipment.